Question

compute the rate (in %) for the loan. round answers to the nearest tenth of a percent; use ordinary interest when time is stated in days.
principal: $36,000
rate (%):
time: 60 days
interest: $594

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $I = P \times r \times t$, where $I$ is interest, $P$ is principal, $r$ is annual rate, $t$ is time in years. Rearranged to solve for $r$: $r = \frac{I}{P \times t}$

Step2: Convert time to years

For ordinary interest, use 360 days/year.
$t = \frac{60}{360} = \frac{1}{6}$

Step3: Substitute values into formula

Substitute $I=\$594$, $P=\$36,000$, $t=\frac{1}{6}$
$r = \frac{594}{36000 \times \frac{1}{6}}$

Step4: Calculate and convert to percent

First compute denominator: $36000 \times \frac{1}{6} = 6000$
Then $r = \frac{594}{6000} = 0.099$, convert to percent: $0.099 \times 100 = 9.9\%$

Answer:

9.9%